"Preventing Local Extinction"... Cultivating 300 Regional Representative SMEs by 2027

'Measures to Promote Innovative Growth of Local SMEs'
Step-by-step Support... Establishment of Startup and Venture Valley
"Local Governments and Institutions as One Team... Creating an Innovation Ecosystem"

[Image source=Yonhap News]

The government plans to nurture 300 local small and medium-sized enterprises (SMEs) by 2027 to prevent regional extinction and revitalize the local economy. It intends to introduce support measures in the areas of manpower, finance, and exports to ensure stable growth of local companies.

On the 6th, the Ministry of SMEs and Startups announced the 'Plan to Promote Innovative Growth of Local SMEs' at the 'Emergency Economic Ministers' Meeting and Export Investment Countermeasures Meeting' chaired by the Deputy Prime Minister for Economy.

First, in cooperation with local governments, the goal is to nurture 300 representative SMEs leading regional economic growth by 2027.

Growth stages of each company will be classified to establish strategies led by the region and support customized technology development and commercialization. In core industrial sectors, 280 leading companies will be nurtured, and for future new industries such as hydrogen and semiconductors, which are difficult to promote in a single region, 20 'super-regional leading companies' will be selected through inter-regional cooperation.

The 'Local SME Growth Project 300,' where various local support organizations assist companies, will be promoted, and a collaborative foundation to activate exchanges among excellent companies will also be established.

Additionally, mid- to long-term plans will be prepared to create region-specific startup and venture valleys like the 'K-Bio Lab Hub' in Songdo, Incheon. The K-Bio Lab Hub is being developed through cooperation between the Ministry of SMEs and Startups and Incheon City. It is expected to bring together Korea’s leading bio companies, startup and venture firms, universities and research institutes, large hospitals, and SME support organizations.

To ensure stable growth of local companies, support policies in manpower, finance, and export sectors will also be introduced, including ▲designation of SME talent universities ▲introduction of network loans ▲support for entry into global supply chains.

An SME talent university refers to a host university that operates contract departments for SMEs offering full degree programs (bachelor’s, master’s, and doctoral) in specific fields according to corporate demand. Network loans are short-term policy funds where cooperating companies receive working capital loans based on delivery orders, and purchasing companies repay them.

While advancing the regulatory free zone system, a 'Global Innovation Zone' equipped with an advanced regulatory environment and a specialized demonstration system for global expansion will also be established.

Furthermore, the crisis support centers currently operating in five regions will be expanded nationwide by 2027, and a 'One-Team Regional Innovation Network' will be built to form a partnership-based cooperative relationship.

Minister Lee Young of the Ministry of SMEs and Startups said, "For the success of the local era, it is most important for regions to find their own growth engines and create good jobs locally. The key to that success lies in the innovative growth of local SMEs, which form the foundation of the regional economy."

He added, "We will take the lead in creating an innovation ecosystem centered on local SMEs by becoming one team with local governments and regional innovation institutions."

This content was produced with the assistance of AI translation services.